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Cloud ERP Benefits

Cloud computing is not the be all and end all, but it does offer opportunities to take advantage of the ever-interconnected world. And as this world becomes more and more technologically savvy, cloud computing offers ERP businesses a way to work more efficiently and productively, while concurrently saving you money.

Yes, there are still concerns over the security of cloud solutions, the potential downtime, and the level of service you are getting in comparison to your on-premise solution. But with the amount of money you can save by shifting to the cloud, it might all just be worth it.

Here are three ways you can save money if you move your business to the cloud.

Increased Efficiencies With Cloud ERP

With cloud computing, internal efficiency is improved. Organizations will no longer need to buy or maintain expensive servers. As such, IT departments will no longer be required to act as data center managers – IT administration, licensing issues, software updates and security management will all be taken care of by the cloud service provider. This mean your IT staff will have more time to focus on innovation and other organizational differentiators, rather than on time-consuming IT management issues. For example, if you work in the food or automotive industry, you know that attention to detail is critical to ensure product quality and that demands are met. With a cloud-based solution that supports this demand, your IT department will have more time to focus on developing vertical solutions that will help you gain a competitive advantage.

Pay For Only What You Use With Software As A Service

Before the cloud, companies would purchase long-term licensing deals (lasting a year or more) for a large number of users. If the company did not use all the licenses it purchased for that year it would eat that cost. With cloud services, these days are over. Companies are now able to add new users without purchasing new software, paying only for what they use in a pay per user model. This moves a bulk of IT expenses from capital to operating, as companies would now be paying for monthly user fees.

Less Up-front Costs And Investment Risk

A traditional on site ERP implementation requires a huge investment for software, hardware and implementation services. On the other hand, the cloud service subscription-based model does not require large up-front investment or long-term commitment before you can go live with the ERP system. What’s more, you can easily scale your ERP usage up (or down) as your business grows without the requirements to invest more hardware, storage and IT staff.